By Emeka Anaeto
Last week we started this series on windows for Small & Medium Enterprises, SMEs, access to business loans in commercial banks, and we took-off with focus on Stanbic IBTC Bank. We noted that this series would only serve the purpose of basic information about SME loan in the focused banks adding that you may need to visit the banks for more information.
For Stanbic IBTC we also noted that one of the key offers to SMEs is what they call, SME Overdraft, designed to help SMEs make payments from their business current account even when the amount they needed exceeds the available cash balance in their account. Details are in our last week’s edition and also online.
But today we conclude this opening part of the series with basic requirements for Stanbic IBTC SME Overdraft.
First you need to know that you should be maintaining a current account in the bank in your company name.
Some basic requirements for this loan includes, the full names and official positions of those signing the loan deal, usually owners in the position of managing director, Chief Executive, Chief Financial Officer (may be the head of accounts or chief accountatnt).
They should supply their curriculum vitae as well as those of other management team.
You should also state the reason you need the overdraft, usually captured as business plan on how the loan would be utilised.
These should be accompanied with your companies’ financial statements, including an income statement, balance sheet and cash flow statements.
There should also be a personal statements of assets and liabilities of all the partners, members or directors of your company.
Finally, you should provide a 12-month cash flow estimate of your business.
It is advisable to use financial experts for most of these requirements, but the bank can also help you out.